New BLOG|CharlotteCommunitiesOnline.com

Hey everyone,

I (Terry McDonald) am posting over at my new HQ, new digs at

CharlotteCommunitesOnline

its not perfect yet, but full of posts and well under way!!!

check out this new feature, new home community reports, a new home Top Ten List:

Antiquity in Cornelius
Brookhaven in Weddington
The Palisades In Southwest Charlotte

See you there! Terry

Antiquity in Cornelius

Antiquity is the largest mixed-use community of homes, offices and retail since Birkdale, and promises to change both Cornelius and Davidson over the next decade. The covered bridge on the right is it's northern entry from Davidson, and the Cornelius entry will be at the Town Center in revitalized Cornelius. This community will be a major real estate addition for the north Charlotte suburbs.

Antiquity is just getting started, roads are in and the models just opened and the first homeowners are moving in October, 2007. Two very well thought of builders, Cunnane and Meeting Street Homes, are building detailed period style town homes from the high 170's, and single families in the 300's. I'll have more in future posts, but if you have some vision, their early prices are attractive. I think you'll like their style and if you've visited other communities by Cunnane , you know they are also know for their appreciation! The photos below are from the Cunnane side, Meeting Street pictures will be up next week.



It is a front porch community in walking distance to downtown Cornelius or downtown Davidson, a new community connecting the older Cornelius with the eclectic college town of Davidson.

Charlotte 2 Year Price Increase 2nd in the Nation

Everyone likes to have their work validated, even indirectly. A new website for the investment industry uses my market reporting methodology-- the change in Sold Average Square Foot Price-- as their means to compare price appreciation in local housing markets. Charlotte ranks 2nd in growth nationally according to Radar Logic,11.3%, growth in the Sold Average Cost per square foot. (cps)Radar Logic is a tech company serving the investment banking industry.

For some time I've had issues with the Carolina MLS's regular reporting and the Charlotte Observer's regular coverage of the monthly median price index. It offers little in statistical meaning because it doesn't adjust for changes in average square foot of homes sold, so if one month people buy homes that average 50 sf larger than the year before, there is no meaningful comparison of price. That's why our market reports vary from theirs; our numbers here and for our clients are always based on the average cost per square foot of the sold property. SOLD COST PER SQUARE FOOT! And it isn't hard to figure, it's a mathematical process called division.

Here is the Radar Logic view, "The price per square foot metric provides a powerful tool to analyze housing markets because it significantly reduces the influence of property sizes on overall housing prices that can skew results."

Couldn't say it any better.

Sunday Night Steals and Deals- Myers Park- Charlotte

Back from a trip out east (more on that tomorrow) it is Sunday night and I've been thinking about Myers Park. I grew up in Washington DC and the area there most like Myers Park? Chevy Chase or upper Northwest. Well Myers Park is just 5-10 minutes to Uptown and has housed Charlotte's elites since the earliest days. Wide boulevards and 100 year old oak trees are common, as is original construction dating to the 1930' and 40's, with some a bit older still. These pictures should offer some flavor... so my Sunday Night question is how far would $1M go in Myers Park, a close in suburb of Charlotte, NC?
If you are going large, (over 3500 sf) you'll be getting houses on large roads, Runnymede, Providence and Sharon, with only one exception, a contemporary that don't sell well here. So I went after smaller restored home and found a beauty on the less crowded end of a popular street, Selwyn Avenue. Since this one has a website, I can show you this (non-mls) graphic

3300 heated square feet, plus 1900 sf unheated, with 4 br and 3 baths. This tastefully restored home has a great in town location, curb appeal for $709,000... any one like to try 675K and see where it takes us?

Top Ten Reasons To Vote For Mecklenburg County School Bonds

So lets lay it out here--our schools are heavily overcrowded, and the older schools need repair, these facts are not really in dispute, most of the dispute centers on "who" should get "what" plus a few folks who would like to defund the public schools for a variety of reasons including something that happened way back in 1957. In truth we need about 1.4B in new schools to meet enrollment needs in the next five -seven years. This 516B is just the first installment. So I'd like you to see the whole picture, and get behind the larger 1.4B number.

Do you know that temporary trailers house more than 25,000 students? did you know that 20% of the "temporary classrooms" are more than 30 years old?

Each of us will have our own most important reason, but I think one or more will appeal to you. The reasons divide on two broad fronts: economics and staying true to our American ideals.
See what you think. Not registered? You must register by October 12 to vote.
Oh, and you better grab a cup of coffee, it's a long post.

Top Ten Reasons to VOTE YES NOV 6 for the School Bond

1. It is a compromise, but a fair one.
It is only the first installment towards resolving all the building needs of this large school system. Many very real needs won't be met with this bond-- so some citizens must look beyond their immediate needs, and trust that we will do the next two installments, so that those needs are met and everyone benefits. It is a new day, we have the votes, don't let them divide us.

2.Today's children are tomorrows leaders, citizens or criminals.
It is much cheaper to educate than imprison-- average annual CMS cost per student per year, $5800, Average College Tuition $10,000, average prison inmate cost $24,000 per year. It's the economics!

3. The #1 Reason business give for relocating here-a highly skilled and trained workforce.
Did you know that by 2014, 80% of all factory jobs will require post-secondary education, factory jobs! We want more business in Charlotte, we need more quality schools, note the business council and Chamber of Commerce are 100% behind these bonds. Or we could be like those Northern cities where when kids graduate there are no jobs so they move elsewhere.
It's the economics!

4. Test scores rose 13% in Superintendent Gorman's first year.
Scores rose 13% for students performing at grade level, and he recognizes it's only a start, there is still a long way to go. And there is. Still, a good Return On Investment for one year.

5. It's an investment in the city of Charlotte's future.
The most successful government program ever? The GI Bill that made college education affordable to the Greatest Generation-- Investments in Education are PROVEN, they WORK, we just need to remember our own history. Like to make the state of North Carolina great? Provide great educations for the children- that simple.

6. Pay me now or pay, me later said the old television commercial.
I said this before but it bears repeating: 1/2 of all prison inmates are high school drop outs.

7. Doesn't your child deserve the best you and (we) your community can offer?
Isn't that what parenting is about? Can you imagine any parent feels that different about their kids? Then why is it so difficult to see that everyone in this county (and country) deserves the same? Because it is expensive? Because it is hard? While buildings aren't sufficient for a great education, they are a very necessary part of the education matrix. I don't think its to much to ask, roofs that don't leak, facilities that are safe, science labs in all high schools, music and arts funding and a football stadium. No, Americans can and have overcome harder more expensive things in the past. Every child deserves a quality education, taught by good teachers. That is not too much to demand.

8.It is who we are, a nation committed to all of its citizens. Ben Franklin and Thomas Jefferson knew that to run a democratic republic, the public must be educated, and public education was born. This is no time to turn our back on their wise council.

9.Our children are part of the future of our nation-- and if you believe that this country is great, you have to put your money where your mouth is... and that goes to the federal level as well- a month's spending in Iraq would pay for half the new schools needed across the whole country.

10. Some say the schools are run so poorly that it's throwing good money after bad. This is just wrong- go into the schools and see for yourself. Or, "My child's graduated, or goes to private school, why do should I pay?" Because this country has been dedicated to providing public education since its inception 230 years ago. No, these arguments are selfishness disguised by thin excuses, the real attitude? "I've got mine, who cares about everybody else?" These are not the values that have made this country great, and thankfully they are not close to a majority view here either, just a loud minority.

Only those who think this city's best days are behind her, don't want to invest in Charlotte's future. I believe Charlotte and North Carolina's best days are in the future. And by all means lets keep them accountable, keep them looking for ways to cut costs and be more efficient. Keep the pressure on, but these are capital investments and require the cheapest financing available- give them the funds and tools to do the job. As for me, I'll happily stand with Franklin and Jefferson in the commitment to public education- it is absolute necessity to a functioning democracy.

And as we teach our children the ideals of our founders, we find ourselves recommitting to those same principles ... something else of value.

Let's defeat this BIG Time, 2 or 3 to 1.

VOTE FOR CHARLOTTE'S FUTURE. Vote For The School Bond November 6. Vote FOR the land acquisition. Vote AGAINST transit repeal.

Video of The US National WhiteWater Center

Here's a you tube clip I found... enjoy




I've been several times, always had a good time, even swimming once or twice. Hear someone knock it? Ask if they've been there. The knuckle draggers haven't made it out somehow...

Another Bad MLS Stat- % Sale to %List

Recently I wrote about how our DOM is basically a bogus stat, one that is dangerously missing key information. Another stat we Realtors like to bandy about is the % Sales To %List Price Ratio... you know the one, here in Charlotte it is typically cited as 97-98.5%.

Often Sellers ask what your rate is, trying to compare you to this mythical average, (I'll prove the mythical part in a minute) when they are comparing Agents seeking Listings.

In fact our local MLS board proudly reported in September that the % Sale to List price was essentially unchanged from a year ago, therefore our market was perfectly healthy.

I feel better already. All I can say is we have a very wise group of sellers and even smarter Realtors who must price every property almost perfectly, don't you think? I can see the skeptical look on your face ...

Of course the title gives this away, but yes, the %Sale to % List stat is bogus too, for almost exactly the same reason as the DOM stat doesn't work for consumers-- it only reflects the last List price, not the first, exactly as the DOM stat only is taken from the last Listing date, not the first.

To make this easy lets say I list your home for $1,000,000. According to the MLS you can expect to get say 97% or $970,000 which you think is great because the house is only worth 500K. So lets agree the %Sale to % List is not a very accurate predictor of sales price, OK?

But then after a month, after we've received no showings and several anonymous notes asking if we always drink or smoke something before Listing, we lower the price to $500,000- the real market value and showings begin and your home is wonderful and we soon get a sale for full price, $500,000, which is also fair market value.

I just sold your home for 100% of List... 500,ooo Sales Price is 1005 of List price, the last List price anyway. Are you beginning to see the problem here? It is related to DOM this way, the MLS only reports your last List price, making there be no penalty for people starting high... other states, the original number always appears on the MLS sheet, so buyers, and their Agents know at a glance the Original price, and current price.

Yes, my agent readers will tell me we can look it up and provide that information to our Buyer client, and that is true. Just like looking up the actual DOM, I'll get a history of the Listing price at the same location-- but again why do we post our information this way?

Once again they report the price this way to protect the Seller and the Listing Agent-- by not putting the original Listing Price in, there is no penalty for pricing a Listing ridiculously high, to the seller or Agent.

What's going on? They are still hoping for the stupid buyer... you know the mythical "just fell off the turnip truck Beverly Hillbilly type" Well guys in the age of the Internet and Buyers Agency those days are gone.

I insist all of my Buyer Agents report the actual Days on Market, and the Original Price, on every property a client has significant interest in... it is just made harder by a delibarately opaque MLS.

And you've just got to love the liability switch-- by reporting DOM only on the Agent copy, the MLS never tells a client DOM, or original List price, only the Buyer Agent does, giving the MLS their "Get Out Of Jail Free" card if the buyer Agent neglects to provide this information- it dumps liability on the Agent if its ever a problem. Gotta love that!

Not.

September Market Report, Prices Rising!

The average cost per square foot (cpsf) rose 6% in September as compared with the average cpsf in August 2006 on single Family homes in the greater Charlotte Area*, and unit sales were off again. Here are the numbers:
Average Cost /SF Rose from 110.46 to 117.14, 6.05% increase.
Units Sold Fell from 2537 (2006) to 2068, 18.49% decrease
Expired Listings Rose from 439 to 692, a 57% increase, but numerically, less than half the lost sales.

*The counties and area covered are Mecklenburg,Union,Iredell,Cabarrus,Gaston, Lincoln, Stanley, Lake Wylie and Lake Norman (whole)

I also looked at the 3 month period 7/1/2007 to 9/30/2007 versus the same period in 2006-- the three month numbers should give us a better trend line, and indeed the lost number of sales is lower, as is the appreciation.

3 Months Ending September 30
The Average Cost/sf rose from 114.25 to 119.63, an increase of 4.71%
The Units Sold fell from a high of 9013 (2006) to 7848, and 12.93% decrease
Expired Listings rose 49%, again the increased number of expireds is about 50% of the lost sales.

Conclusions? Overall, the market is obviously slower, but as price gains remain steady, I'll have to repeat that the value fundamentals in our market are still steady, rock steady. A 13% decrease in sales is significant, but we know that 7-10% of the buyers are out due to the extinction of sub prime lending, and we know that many folks can't sell their home in the northeast, in the west or Florida. So the result is that with 13% fewer buyers, our prices rose. Excellent!

Now most of you know I don't care for our bogus Days on Market stat, but the Absorption rate is another matter, and based on 4170 Active listings, we have less than 9 weeks of inventory based on September sales. Very Good!

I expect to hear the New Home sales are worse. They were quite late in reacting to the national slowdown that began 2 years ago, so their inventories are high. Once again, if you are buying new, only buy an inventory- at a discount!

I'll be doing area reports in the next several days.

Realty Place- Deception, Collusion, And Fraud?

For some time I've waited for the "other shoe" to drop-- the real estate Broker/Agent role in the high number of foreclosures and "upside down" neighborhoods built by Beazer and financed with sub prime lending...

I can't speak for the industry, but I can speak for myself, reading "Homebuyers in the Dark" and "Promises Upfront, Deals on the Side" by Observer reporters Applebaum and St. Onge, in my opinion three words descibes the Realty Place concept and their agents: Deception, Collusion, Fraud...A possible fourth, Conspiracy would be harder to prove, but I think there needs to be an investigation, state SBI, are you listening?

Key facts uncovered by their excellent reporting:

From 2002-2005, Beazer Homes paid Realty Place 2.2M in commissions including 700K in bonuses, on 420 transactions averaging 3.9% of sales price, a full 1.2% higher than the national average. Of 50 purchasers interviewd, not one said they were told of the bonus by builder or agent.

From the Observer statisticians, "Most of the increase in foreclosures in Mecklenburg County are accounted for by the increase of "starter home" foreclosures." And, of the "Beazer Homes sold by Realty Place in 2002, 1/3 are in foreclosure". Wow, the national average for foreclosures is 3%.

Lets look at where the foreclosures are on the Observer map here. Anyone want to bet that there were a high number of minority purchasers as well? So it seems clear that the "Heinemann Innovation" was to bring sales techniques formerly confined to low class sales companies (sell the payment to undereducated people has been the practice of some home improvement companies, timeshare guys and some of the early Land (swampland) sellers)and prey on a new class of unsuspecting, unfortunately all too gullible first time home buyers. And hide behind statements like, "We disclosed everything," and "I can't be sure we trained to tell every buyer there was a bonus," the owners have produced a wall of what they think is plausible deniability.

As they say in Texas, "That dog won't hunt."

Key Questions: Realty Place was known for its horrible "split"- the percentage paid to the Agent doing the work. Of that 2.2M paid to Realty Place, how much went to brokers/owners Heineman, Jordan and Boschele?

Also- why would Beazer pay 3.9%, over 1.2% higher than the national average to Realty Place? Why would they do that-what were they getting in return? And who were the biggest beneficiaries of that extra 1.2% and what did they give Beazer? And did you note the customer who was taken only to Eastwood and Beazer, and once Eastwood was out, they only looked at Beazer? When there are at least 10 other builders building in this price range, only Beazer? Is it possible the other builders only paid the industry standard 2.5%?

The answers to these and other interesting questions lie in the records of Realty Place where every HUD must be kept for a minimum of 7 years. The HUD is a highly detailed record of the transactions, the precise records an investigation would collect. Every lending transaction would appear here as well- anyone want to bet that the loan costs are at least 1.2% higher than the national average? Legal fees, title fees and insurance too? It's the HUD-the one place that will diagram the tangled web of relationships that will prove collusion, quite probably deception, and maybe fraud and conspiracy too.

So I think if an investigator reviewing the HUD Statements, and looking at the books to see precisely the income streams and how the owners of Realty Place made their living-
this thing will unravel and we'll see some perp walks.

Let's hope for that investigation and see where it takes us.

Buyer Agent Bonuses and Other Mistakes

Yes I've accepted them in the past. No, I can't accept them in the future. Why? Well you have to ask, who am I representing? I'm representing Buyers. If a Seller is paying me a bonus, what is he paying a bonus for? In other words, what's his motivation? And if its OK to accept a small bonus, when is that bonus too big? I wrote this post about a $50,000 Buyer Agent bonus last month that just put me over the edge. Then the article in today's Observer. Thought they could be abused, and they were.

Now let me point out right away I have never sold a home because of a bonus. I never wanted to hear a customer say you sold me this home because of the bonus. In almost every case I disclosed the bonus. But not every case. And it did adjust the playing field once-- a Centex home with a 10K bonus worked its way onto the View list. I remember selecting it for the View list along with about 10 others, out of 30 or so...

The buyers bought this house, not at my suggestion, but inspite of a lot of things. The bonus was nice, I could justify it because Centex dropped the price to my buyer by 35K or so-- but still, how much do my customers have to pay for my services?
And they did pay for the enire commision, within the sales price of the home, didn't they? Anyone doubt I could have negotiated a 10k price reduction giving up the bonus?

So- if there is a Buyer Agent Bonus what will we do? Pay it to our buyers, either in reduced sales price or rebate. There can be no other answer- because even a small bonus may distort the playing field.

We either represent the Buyer's interests alone, or we represent someone else. I choose the Buyer.

You Aren't From Around Here Are Yuh?

The Charlotte Observer did one of their "state of the city" articles today asking the question of the hour: "Is Charlotte Still a Southern City?" Anyone who has worked with me or reads my stuff knows that for a long time I've told people that Charlotte is a large modern city in the South, but not a southern city. Now thanks to the prodigious database editor of the Observer, Ted Mellnik, we have these numbers to prove my point, thanks Ted.
1. In Mecklenburg County, 57% of the folks living here were not born here, and 62% of those were born outside the South.
2. 88,000 moved to the area, summer '05 to summer 2006. After a few exports, we realized a net gain of 74,000.
3. Where do they come from? In Mecklenburg County, they come from:
Northeast 25%
Midwest 12%
West 6%
South 33% (includes Florida- is this really the South? South Miami maybe!)
Outside US 24%

4. The definitive answer: there are more pizza shops than barbeque shops listed in the Yellow Pages. And yes, you can get pie by the slice here.

Now be aware there is a 20 mile rule-- 20 miles out in any direction and you could be back in the Old South. But here in Charlotte things are different.

That doesn't sit well with some of the natives and at times they fight a rear-guard action, trying to put the genie back in the growth bottle so they can return to the good old days of the 70's and 80's when they ran things.

Ah well, here's to the future! Charlotte's best days are ahead of her! Never been here? Well have a look a the slide show below...


I'll see you in Charlotte! See the full Observer article here.

Sunday Night Steals and Deals

Tonight we will continue looking at Huntersville, NC, a little higher up on the price ladder...under 600k, under 800k and under 1 million.

In the under 600k range, we now see many features become common place. Mostly full brick veneer, granite counter tops, Stainless Steel appliances, and tile bathrooms. Neighborhood features step up a level as well, including golf, clubhouse, pool and tennis courts. Several of these homes were on the Golf course. Of, course. lot sizes are larges, ranging from .32to .94 acres.

Here is a case where $/sf is not always the best measure of value. The range here was 131 - 170 $/sf. Your 'value' in these homes would be in direct proportion to your interest in Golf, no necessarily in the amount of total space in the home. The same goes for the one house that had a private pool in the yard. Either you want it or it has no 'value', and may even be a negative, in your estimation of value.

Having said all that, the choice in this range was a 3866 sf home in Skybrook. A golf course community that has all the amenities mentioned above. At $151/sf it is solidly in the middle of the range at $584,900. Built in 2004, many of the new home hassles, like establishing a yard and initial window treatments are already in place. Of course new owners may have different tastes for some items, but changes can be made over time, not immediately. The house has a Master Suite down, a feature more and more in demand.

My choice in the under 800k range was easy. There was only one available, and newly on the market, as well. Also in Skybrook, priced at $799,900, the distinctive feature is a fully finished basement. Larger than the others at 5861 sf, it has 6 bedrooms and 6 baths, sitting on .57 acres!

In the under 1 million category, we see some true custom homes and estates, with land up to 15 acres or Lake view or even Waterfront. My choice is the Waterfront home. This is new construction, 3561 sf at $899,900. There is a private deck off the master bedroom with a lake view. This home even has a Private pier on Lake Norman (this is becoming a rare item, as every lot is not automatically allowed to have a pier). All these features make this one a real 'Deal', if it's in your range.

As I've said before, due to advertising restrictions, I cannot show pictures of these homes here, but you can email me and I will be glad to send you a full property report.

See you next week.

Blogging from Pensacola, Florida

I just spent the last few days in Pensacola with my son finding him a place to live and getting him started in Flight School- Naval Aviation.

The real estate here is flooded with home for rent and homes for sale. New construction is limited to a few pricey waterfront developments. My son had his pick of 1700-2000 sf hmes for under 1000 per month. All were in good conditon, in good neighborhoods. Tough place to be in RE.

Here are some photos, the white sand might be brighter white thanit appears:


It was still in the low 90's with water temperatures in the 80's.

Festival in the Park, Freedom Park, 2007

Here are my slides from the weekend, the Festival was great. Enjoy.

Mark you r calender for next year.

Carolina MLS DOM: Delibarately BAD

Breaking Down The Carolina MLS Numbers, first of at least two post.

Well after quite a number of tries, I was able to duplicate the results for the MLS August press release with one exception, Days on Market... that's not surprising since Days on Market, DOM, is a meaningless statistic the way Carolina Home computes it.

This is first in a series on our local MLS and will be included in the transparent real estate section of the blog- in this post I examine how the Carolina MLS and the DOM numbers are deliberately inaccurate and how they work against buyers and their agents.

Good agents and brokers use the MLS daily and it is generally a very reliable source of data- a truth teller for the property, and a truth teller for the market. It needs to be because customers depend on it... we send them "Customer Full Reports" in their email every day. They can and frequently do compare properties side by side for features and square foot for square foot. Accuracy is so important, an Agent or Broker can be sued for knowingly putting in false information, and censured by the real estate commission for accidentally putting in false information.

So why isn't MLS's Days on Market accurate? And why did I say deliberately above? You be the judge.

For the Carolina MLS, and many, but not all MLS across the country, the Days on Market given by the MLS don't start necessarily when the house first went on the market. DOM is often an indicator of seller motivation and the general health of the market. A seller with a DOM of 200 is more likely to take a lower offer than one with a DOM of 5, wouldn't you think? That might be important information to have when considering how much to offer, wouldn't it? But what if the reverse were true? That DOM 5 was actually over a year old, could you miss making an offer here? Yes you could and the truth is client or agent don't know from our MLS reports. Interestingly, the inaccurate DOM does not appear on the "Customer Full Report" only on the "Agent Full Report"

As an aside, I spoke to our MLS today, asking how they arrived at their DOM reported in their last Press Release? I was told by their Data base manager that the "Numbers were flaky from the start." Back to the customers...

Customers frequently ask, "How many days has it been on the market?" We refer to the Agent Full Report and tell them. And it may not be correct at all. How is that so? Well in the example above, in the Carolina MLS, the DOM 5 could have been on the market much longer than the DOM 200. Say that again? Thats right, the DOM 5 could have been on the market longer, because the way CMLS measures it, it is from the last Listing Date, not the original listing date. In the example above, the DOM 5 listing could have been on the market for one year, 365 days, then fired their first agent. A day later they re-listed with a new agent. Presto, new listing date (latest listing date) and a brand new DOM, 4 days later we (buyer and buyer agent) are reviewing and it says DOM 5. Can we research this and find the true answer? Yes, but again, why is this Wrong answer on the MLS Sheet WE strive so hard to make accurate?

Two additional questions: Why isn't DOM on the "Customer Full Report"? and Why do they measure it from the last listing date, instead of the first, like so many other MLS's do? In the example above, the Listing Date and DOM should have been taken from the first listing date, not the last, for accurate DOM.

Why? It is figured from the last List date on the MLS to yield the smallest (DOM) number to protect Sellers. It not being on the Customer Full Report protects the MLS from liability, and in the process they leave us Buyer Agents liable. What? We're liable as Agents when the MLS printed the info? Yes because we tell the customer the DOM from the Agent Full Report. That means the liability is with us, if we don't also explain every time we say "DOM is 20, but that number doesn't mean much I'll research it." They then ask why it doesn't mean much...

Then after explaining why this number is not to be trusted, the customer then asks, which other numbers can not be trusted? It happened to me this past month, just this way working with an astute California couple moving to Charlotte. He pointed out to me the differences and asked the same questions I am trying to answer here.

I think it is clear-- Days on market should be from the first listing date- as I understand in California if its re-listed within 30 days it is the same listing. And I think it should be on the Customer Full Report-- no reason to hide it and set up an inexperienced agent to mislead his client by not doing his homework.

What other numbers on your MLS are hidden from the customer? What other numbers do the MLS use to favor sellers? Ah the subject of my next post. There is a movement nationwide towards transparent real estate, I'm getting on board because transparent real estate is better real estate.

And its been this way forever? Do you think they don't know the DOM numbers are bad?
I knew you were a smart crowd! :)

Sunday Night Steals And Deals- Huntersville

Tonight I'm looking at Huntersville, NC, a popular northern suburb, about 25 minutes to Uptown, and ranked as one of the top 100 places to live in 2004 and 2005 by Money Magazine.



I'm also going to detail the criteria I use in determining value from my excellent tools at hand, the MLS. Since I don't have a personal stake in it, i.e I don't have to live there, my only objective is to help you find a place that makes you happy, understanding your choices and trade-offs, without committing any large real estate errors. Regardless of what I think, the call is ultimately always the Buyers.

I looked at two entry level prices, those for under 250K and those under 400K. I also am only
looking at new or newer homes, built since 2000.

In the under 250K there were thirteen entries after I added the 2500 square foot minimum criteria. They're Asking Prices fell in a narrow range, from 88.95/sf to 96.61/sf. Then I began looking at features, but not the features you might think-- I began looking at what I call "Value Anchors"-- these are features that are always desirable by a large proportion of buyers, almost always are unchangeable, and they give the property its intrinsic value. They are what causes differentiated appreciation (one neighborhood appreciating faster than a neighboring one) . Prime in-town locations are obvious value anchors, as is waterfront property or golf course property. Less obvious are other traits, such as sizable yards, cul-de-sac locations, community features such as pool and playground, and other neighborhood amenities.

Note, I didn't mention house features- those are more subjective and, for me, come after the house has met the aforementioned criteria. Also, it is something I rarely choose for anyone but my family-- and even then it is not wise to do alone! :)

So from my 3 semi-finalists the prices ranged from 241,900 to 248,00. Since only 2 had terrific community features- pool, playgrounds and more- I eliminated the least expensive, leaving two excellent candidates, at 248 and 244.9, both with great value anchors in the community features. They were .25 and .23 acres respectively, the .23 (244.9) was fenced, the .25 was newer, 2006, vs 2001 for the 244.9. However the 244.9 was priced at 96/sf and the larger, 248 was priced at $90/sf, and larger by 200 sf at 2735 sf. I think many of you are probably seeing the benefit of a chart here? I'd recommend it.

There is clearly a case for either of these, but I know something you don't know. The 244.9 is in Cedarfield, is priced 96/sf and is right in the middle of the price per square foot range for this community. Also it has a fenced yard, always good on the re-sale side plus a terrificly landscaped yard, versus the new builder special, 9 bushes and (1) 5' tree, whose sf price is near the top of its community. And the other sales in the 248AK neighborhood? There is only one larger than 248, so it is a top of the market Asking Price- something I can not recommend. Last but not least I know something you can't know at a distance, but is suggested by the above data- most people, myself included, would prefer Cedarfield to Tanners Creek-- so, we go with the slightly smaller home, at 2535 sf, with an asking price of $244,900. A study of the comparable sales shows this home to be priced aggressively, not a "hope for price" and so I'd recommend a first offer around 224, expecting to have to pay 236-239 to get it. There is a 10% chance it will go for full price as comparable sales suggest an at or near full price sale.


I went througha similar process in the under 400K category having to adjust the criteria to 2800 sf minimum to get a manageable number of listings. From my Home Comparison Report, I found they ranged from $88 to129/per sf of Asking Prices, the median being $109/ sf. I had 4 semi-finalists across the price points (price per sf) but quickly cut it to two when I noticed one didn't have a community pool and one was the former model home and was priced higher than any sale in the neighborhood. SoI've labelled them A and B, so you might see it easier.
A) is in Birkdale, built in 2001, AskingPrice is $385,500 and it has 3117 SF, so it is Asking at 123.5/sf. Birkdale is a golf course community with great amenities just off I-77 Exit 25 in Huntersville. The house is a 4br/3.5ba home on .344 acres, on a cul de sac, with a covered front porch.
B) is in MacAulay, built in 2006, Asking Price is $380,000 on 3774 SF or 101 per sf. It too has great amenities, but no golf course and is located just of Exit 25. It hjs 5 br/3.5 ba and sits on .182 acres, and has barely been lived in.

Both seem to have all the upgrades- granite/tile backsplashes and hardwood floors. Birkdale sells in a tighter range than MacAulay. MacAulay is the clear space winner, and has the extra bedroom.
So this is a draw, impossible to say with the information at hand, which is the clear winner. if you don't need 3700 sf, I'd suggest the Birkdale option... it's higher sf pricing suggest a "better" community- and I thinkmot people would prefer the house spacing, street placement and appeal of Birkdale over MacAulay, not to mention it is a golf course community. On the other hand, if needed a 5th bedroom and the 3700 sf, MacAulay is a bargain at 100 per sf, a fraction above Cedarfield above.

There you have it-- the basic criteria I use to evaluate properties before visiting them, to determine relative value, desirability and which could geon the the list for Sunday night Steals and Deals.

I'll be travelling this week, I'll try and post from Pensacola, Florida.

Against the Transit Tax Repeal

Oh let me count the ways! Let's start with these facts I think most of us could agree on: Charlotte is growing at an extremely high rate, congestion is high here by any measure, and that growth will continue for the foreseeable future. Therefore,

The tax, .5 cents added to our sales tax, is good policy because:

1. Roughly 2/3's of the annual $68Million in revenue has supported expanding the Charlotte bus service, rapidly addressing short term needs, and 1/3 supports light rail, long term needs.

2. The sales tax is a regional tax, in other words commuters from Iredell, Union County, Cabarrus, York, Gaston-- everyone coming in to Charlotte and purchasing goods here helps pay the tax, in other words, those who benefit from our economy need to be involved in improving Charlotte infrastructure. If the tax is repealed? Ask the pro-repeal guys, it will fall on the shoulders of Charlotte and Mecklenburg County to pay for it through property taxes. This is an easy economic question for city of Charlotte voters.

3. It allows the city to guide its development and reconstruction. It is inescapable that the "transportation policy" is a "land use policy" in disguise, as a detractor points out. Yup sure is- just like a highway plan! Real estate agents in North Carolina have long known that if you want to invest in land, the first stop you should make is Raleigh to see where the roads will be in 15-20 years! Likewise, when choosing transit corridors, there are by definition "winners" (those owning property on or near the corridors) and Losers ( those owning property along competitive avenues) which accounts for some of the cut with a knife screams of "conspiracy" by Transit detractors.

4. It is something we can do. It will not solve the area's congestion by itself, not by a long shot,
but as most know, federal funds for mass transit have dried up and highway policy is set in Raleigh.

5. Suppiorting the tax doesn't keep us from fighting for more roads for the Charlotte region. WE NEED TO! I am a supporter of Republican's Phil Berger and Paul Stam's advocacy that the transportation fund stop being looted, raided, or plundered -your choice of words for a state taking transportation tax revenues to pay for other measures, of a $1.5B road bond for NC being placed on the November ballot, and addressing the archaic way the trust fund allocates highway spending without regard to growth, congestion or highway miles traveled. Berger and Stam also call on Governor Easley and the Democratically controlled state house to take transportation and infrastructure seriously which means NOT cutting the funding by 41M as the current budget does. If education was a winner in the state budget, transportation was a loser.

The critics have been against transit from the start, the cost over runs just gave them the cover to get this on the ballot. Just a note, the price of transit projects is very hard to predict accurately, and if you lived in Seattle you'd think our cost over run small. Many of the tranist critic are the same critics who told you we could get more schools by voting against the last school bond, how did that work out for you? Many of the arguments are the same too. "It cost too much", or "I'm not getting enough for my community" or "We're over-taxed", or "My voters won't ride it." All of these arguments can be translated simply into this reality, "I am not getting what I want."

The sales tax spreads the cost of transit improvements over the greater Charlotte community, and is decidedly more fair than raising my Charlotte property taxes. Most believe a family of four pays roughly $59 more for the sales tax-- and to get similar revenues from our Charlotte property taxes? $160 per year per property owner to fund the $68M the tax produces.

We, the citizens of Charlotte who believe in Charlotte's future, need to take the lead. We need to take the lead on transit, highways, public safety and all the policy's needed to keep this city the great and the wonderful place it is-- for families, for business, and for the state. We need to support forward looking politicians- and communicate that support through our votes and presence to those who believe in the future of Charlotte and this state, and NOT those that believe the city's best days are behind them. I include Mayor McGrory in this forward-thinking group, he has led the way on transit and taken political heat for it. We need to push our State representatives to do what is necessary to provide roads for the 21st Century for North Carolina and Charlotte.

And the .5 cent tax benefits every Charlotte resident because for every person taken off the highway... that makes my drive (and those who have to or prefer to drive) around town a little better.

Vote for Charlotte's Future, Vote NO on the repeal, and lets beat it 3 to 1.

Real Estate Headlines

These headlines just came across the wire (love that expression, culled from my vast email list)

1/3 of purchaser loans originated by Mortgage Brokers failed to close in August, 2007. WOW!

1/2 Fed drop is like putting the lending industry on steroids, jet fuel in place of regular fuel... hopefully that will translate positively as it percolates into the nation-wide housing market. The Fed seem's serious about heading off a possible housing recession-- that's good news.

The priciest zip codes in the country, from Forbes magazine . Always fun, surprises? Yes, number 1 is a new Jersey zip, famous Beverly Hills-90210 was 40th and only 3 Carolina zips made the top 100, all on the coast, 2 in NC one in SC. Check it out

Mortgage Market Report

Olan will report regularly on the state of the mortgage market, rates, conditions and changes to the market. As we've all noticed, the mortgage market can change and change fast. He works for Myers Park Mortgage, the area's largest mortgage lender.

NO DOC LOAN CHANGES

I currently work for the largest mortgage broker in the Charlotte area, as ranked by the Charlotte Business Journal. We are known for aggressive programs and rates. One area I have personally specialized in is No Doc loans, especially for people new to the area.

When you first move to a new state and don't have employment in place, you can not qualify for a new home with a traditional mortgage. I have often been able to help borrowers with high credit scores and large down payments to close on their new home before they obtain employment in the Charlotte area, and typically with very good interest rates.

These programs have changed greatly! Most lenders have stopped offering them or have raised the interests by several percentage points. I just had a client ask me if she could get a No Doc loan for an investment property. After checking with our product specialist, I discovered that we no longer have any lenders offering that program. Hopefully with time these products will return, but for now you can plan on paying over 9.00%.

CURRENT RATES - 9/14/2007

This is not a rate quote. I am posting the average market range for each program.

30 Year Fixed - 6.00% to 6.5%

30 Year Fixed (Zero Down) - 6.375% to 6.75%

15 Year Fixed - 5.625% to 6.00%

FHA/VA 30 Year Fixed - 6.25% to 6.50%

Olan Carder

Why is th APR different from my interest rate?

by Olan Carder
What is an APR and why is different from my interest rate?
Most homebuyers get very confused when they first see their APR. Their loan officer told them that the interest rate is 6.25%, but they see the APR is 6.456%. What is going on?
Before understanding the APR, you need to know its purpose. The APR was invented to help consumers shop and compare mortgage loans. If one lender quotes you 6% with no points but the other lender quotes you 5.75% with one point, which one is better? The APR enables you to easily compare 2 loans because it shows you the interest rate you are paying and the fees you are paying to get that rate spread out over the term of the loan.
In theory, it should be a true apples to apples comparison of two loan quotes. Since the APR shows your interest rate and the fees you are paying for that rate, it should normally be higher than your actual rate. The test is how much higher.
There are 2 problems:
Problem #1 with comparing loans with the APR... each loan officer's computer has to be setup properly to include the correct fees into that number. That leaves it open to human tampering. Far be it from me to hint that some loan officers would willingly print a false APR to win a loan, but even an honest loan officer might make a mistake. That's why you should compare the APR, but also compare the Good Faith Estimate line for line and make sure you are getting the best deal.
Problem #2 with comparing loans with the APR... the comparison only works if you keep the loan for the entire term. If you get a 30 year loan but only keep it 6 years, the comparison might not be correct. The APR shows you which loan costs less over 30 years not 6 years. That's why I offer a "Total Cost Analysis" to my clients that calculates the total cost for period of time they plan to keep the mortgage. That is the best way to compare loan programs.
For more information about this or other loan topics, email me at olan@myersparkmortgage.com.

Unbelievably Beautiful!

Or, said another way, this is a day "nice enough to move to Charlotte for"...far more typical of October, we've had two beautiful fall days in mid-September. Yesterday and today the temperature hasn't left the 70's, it is dry, sunny and the sky's are somehow bluer than they get up north- yes I know that is technically not possible, just another fantastic North Carolina day. Here's one of my favorite lake pictures, taken from one of the waterfront lots at the Sanctuary on Lake Wylie, on another gorgeous Carolina day.

Charlotte Home Prices, The Real Deal On August Prices

Prices are UP, volume is DOWN, reflecting both the underlying strength of Charlotte fundamentals and the affects of the national downturn/recession in housing. This is a look at 13 "bell-weather zip codes" for the greater Charlotte area, from Waxhaw to Mooresville. You might want to get a coffee, this is a long post.

Each zip has the number sold in 2006, and 2007, and the % decrease/increase from 2006.
Each zip has the increase or decrease of average Cost per SF in the % increase/Decrease.
The ATS Ratio is the average Asking To Sold price, for example a 131 ATS means Listing prices 31% higher, on average, than the average solds. Inventory is expressed as the number of months inventory based on the pendings for that month (an admittedly skewed number in August)

		AUGUST 2007
	Area o f	2006	2007	inc/dec	inc/dec	2007	2007
Zip Code	Charlotte	Units Sold	Units Sold	Units %	CPSF %	ATS	Inv (MO)
28173	Weddingon-Wax	142	105	-26	0.82	115.27	3.62
28227	Mint Hill	81	79	-2.47	0.85	114.37	2.05
28226	S Charlotte	65	49	-24.6	1.29	133.18	1.81
28277	S Charlotte	154	144	-6.49	1.77	105.21	2.8
28037	Denver	36	41	13.89	1.91	110	3
28078	Huntersville	119	122	2.52	1.99	106.96	3.23
28269	North Charlotte	194	137	-29.4	2.34	103.3	2.14
28270	S Charlotte	73	51	-30%	4.36	107.68	2.71
28105	Matthews	82	65	-20.73	7.54	109.75	2.03
28209 & 11	SouthPark	77	54	-30	11.26	106.7	3.57
28031	Cornelius	56	56	0	13.88	137.9	3.4
28104	Matthes-Weddi	79	50	-36.7	14.9	97.94	2.34
28036	Davidson	31	16	-48.4	15.93	107.9	2.36

All data is derived from the Charlotte MLS based on single family homes only, but is not provided by the MLS.
These zip codes account for 38% of the 7 County region the Carolina MLS reports on single family homes sold in August of 2007.

Some thoughts

There are 13 zip codes in good to very good condition, despite many fewer buyers. I found c couple if zip codes in negative territory and they will be the subject of future posts.
5 of the 6 double digit ATS, Ask to Selling ratios, were the bottom 5 appreciating region- the meaning? If the underlying value isn't perceived to be there, asking price has little influence on final sales price. Question, could the unrealistically high Listing Prices be driving the Sold prices down? I think so...
So there has been a sizable drop in sales volume this year... the commission checks will be smaller -wah! But is that bad for the real estate market? Well it is when it forces prices down, there's no doubt about it... and that is the result (natural result) nationally of the slowdown, falling prices. But not here.

Despite everything that's been thrown at residential real estate, at Charlotte real estate -- a nationwide slowdown that began in the 4th quarter of 2004, increased through out '05 and gaining momentum in'06 with daily "bubble" stories in national news in the media , the sub-prime debacle which has taken conservatively 10% of the buyers out of the market, and the fact our market is dependent on relocators and the slowdown around the country has kept people who want to move to Charlotte from coming, because their homes won't sell...

Despite all that, prices rose on single family homes for the entire Charlotte MLS area 5.1%- based on the average cost per square foot for sold homes versus August 2006. Wow.

It's as if we are defying a natural law like gravity, because everywhere, everywhere
there has been this kind of drop in units sold, prices have fallen. (I put this out here knowing some of you will check around the country-- be sure and tell me if you find ANYwhere else with similar numbers.) The natural result of a 20% reduction in demand is falling prices.

So why are the Charlotte cost per square foots up?

The reason? The reason is Charlotte's underlying value, our fundamentals, are granite-like. A robust local economy driven by the financial sector, low unemployment, good paying jobs, and generally good government. If we were a stock Warren Buffet would love us! We have a mild climate that folks from around the country are discovering. We still are not heavily taxed.

And much of our real estate is still undervalued.

As the real estate industry has grown more transparent-- the market has grown more national and international, people look at Charlotte homes online from around the world and still say, "That's a good deal." And they are right.

Then people come and visit and find it's prettier than they expected, the city is cleaner, the parks nicer, the people nicer... and they know value when they see it.

And that value radiates outwards.

For those of you reading from afar, you might want to know about Days on Market-- a stat that is meaningless here because it only counts the last listing. Thats right the MLS just covers the last listing agreement- for example you list with Agent A for 6 months, and then fire him and call me. I sign you up and put you in the MLS and presto you are a "new" listing, you've now been on the market one day. I sell it the following week, and your Days on market is 8. See why I can't use their numbers? In its place, I use "month's inventory" based on pending sales repeating (a stretch or worse for August) but still it is the best indicator we have. Inventory by zip codes ranged from a low of 1.8 in 28277, averaged just under 3. In general, times on the market have risen, it is hard to say how much. Good homes in good neighborhoods have moved reasonably quickly this year.

What's it all mean? I'll be breaking it down more in coming posts.

August Market Report- 28031

Cornelius, NC, Lake Norman's capital city, still growing strong on the lower lake.

Average	2006	2007	% Inc/dec
Cost per SF	$151.12	$172.09	13.88
# Solds	56	56	0.00
Aug-07	Average Sales Price		$445,380
ATS	Index		137.9
Months Inventory			3.4

Again I think it is fundamentals at work here, same Lake Norman as Mooresville, but 25-30 minutes closer to Charlotte, in Meckenburg vs Iredell County and frankly better infrastructure to go with it (I can hear the howl now) and just better planning-kudos to city of Cornelius.
Their Realtors and sellers are a little wild in their Asking prices with ATS (Asking to Selling) index of 138-- but it doesn't seem to have affected sales or appreciation does it? This demonstrates the transparency of the resale market-- underlying value is what counts! Despite out of line asking prices (37% high!) sales continue with high appreciation rates, but no where near Asking. Why? Because buyers can tell the real value when they go there, and then online they can see what the homes should be selling for- and that is what they are offering. And then sellers come back to the real world too.

A genuine Days on Market stat would be telling here, as would a MLS sheet that showed price drops.

All data is derived from the Carolina MLS, but is not provided by the MLS

August Market Report- 28078

Huntersville, NC consistently ranks as a top place to live in the country, and it reports solid fundamentals in August. I think its convenience and relative value, what do you think?

Average	2006	2007	% Inc/dec
Cost per SF	$112.13	$114.36	1.99
# Solds	119	122	2.52
Aug-07	Average Sales Price		$296,653
ATS Index			106.96
Months Inventory			3.23

August to August up 2%, sold volume up 2.52, more evidence of a developing national market for real estate as actual sales volume- units- doesn't correspond to sold prices. Rather, I think our area appreciation is based more on competition from other cities-- and because of Hutnersville's popularity in recent years, it has reached a "national" value perhaps for this kind of suburban residential real estate? What do you think? A healthy ATS (Asking To Selling ratio) of 107% and inventory at 3.23 months indicates its continuing popularity. Here is a great photo link to introduce you to Huntersville.

August Market Report- 28105

Matthews NC continues its strong presence in the Charlotte market. Convenience ++ Check out the average Sales Price

Averge	2006	2007	% Inc/dec
Cost Per SF	101.92	109.6	7.54
# Solds	82	65	-20.73
Aug-07	Average Sales Price		$250,535
ATS Index		109.75
Months Inventory		2

Once again fewer buyers-- which around the country (and in almost any other market) decreases prices-- not so here, as the average price went up 7.54%, even while unit volume dropped 20%! Matthews has the small town feel a lot of folks are looking for- and it's affordable. See one of my great slide shows, including Matthews Alive, here
All data is derived from the Carolina MLS, but is not provided by the MLS

August Market Report- 28209 and 28211

The SouthPark area is well known for its convenience, shopping, quality homes and value.

Average	2006	2007	% Inc/dec
Cost Per SF	198.34	220.68	11.26
# Solds	77	54	-29.87
Average Sales Price		$564,046
ATS Index		106.68
Months Inventory		3.57

It is a well deserved reputation. Despite 30% fewer buyers in the market, instead of price decline, prices are up11.26%. Wow. Clearly this is an area newcomers and old timers alike truly love. And the sellers and agents are doing a good job of keeping it real with an ATS of 106%. Inventory at 3.5 reflects the far fewer buyers in this market in August 2007.
See recent pictures of the SouthPark here.

August Market Report- 28277

Zip Code 28277, is a popular South Charlotte zip.

Average	2006	2007	% Inc/dec
CPSF	133.96	136.33	1.77
# Solds	154	144	-6.49
ATS Index		105.21
Months Inventory		2.80

Where CPSF is the Average Cost per SF of sold homes. So the ATS (Asking to Selling) is a manageable 105%, Inventory 2.8 month supply, prices up and even the number of solds, is only down slightly.

All numbers are derived from CMLS data, not provided by CMLS

August Market Report- 28270

August, 2007 Zip Code 28270, central South Charlotte

Average 2006 2007 % Inc/dec
CPSF 117.74 122.87 4.36
# Solds 73 51 -30.14

Aug-07 Average Sales Price $326,842
ATS Index 107.68
Months Inventory 2.71



Average cost per square foot of the solds rose 4.36% in August over August 2006. Number of units fell 30% over a year ago. The ATS index (Asking To Selling) See here for a full explanation- Average Per Sg FT of the Listed to the Average SF of the Solds,- the average listed is asking 107% of the same months solds.

If current sales paces continues, there is an estimated 2.71 months supply of homes.

What of the 30% fewer sales? There were 30% fewer buyers in this zip this month, but prices went up. The market tells the truth, this is still a very popular zip code, central and with good schools.

All data is derived from the Carolina MLS, but is not provided by the MLS

Charlotte Prices By Zip and Getting Rid of Meaningless Stats

The fundamentals within our market- our property valuations- are rock solid. Price appreciation, the main measure of strength, is up 5.1% in single families. Yet there are pockets that haven't done nearly so well, a few have lost ground, and we have 10 - 20% fewer buyers in the market, slowing the growth here for the first time in a decade, you'll see that in the coming zip code posts.

I'm changing format from some of my past market reports, hopefully getting to more meaningful information. We'll still have price appreciation, and units sold, but I'm leaving out Days On Market and %Sold To List numbers, because they just don't make much sense. In fact they are almost meaningless the way our MLS reports them.

I'd like to introduce two new indexes I've created to help get a handle on these two issues. The first is my ATS,(rhymes with Cats, or Fats, but not a_s!) or Asking to Selling, which is a measure of the average Listed cost per square foot, versus the he average Sold cost per square foot for the same period, same neighborhood. For example, in August, zip code 28270 has an ATS of 107.68, and that means Listed homes on the market in August were Listed at average prices per sf 107.68% of the average of solds for the same zip, same time... make sense? Said another way, the listing price is running 7.68% above the actual average sold price, now do you get it? You will see some ATS at around 100, others up to 130. Any guess as to which homes are selling better?

The second index attempts to answer how long the average property will stay on the market. I base this on Pending sales, versus Actives, those on the market. It is expressed in Months Inventory, obviously the smaller the number the better. This index will give you an idea of how many months inventory there is on hand if sales remain at current levels... I know, I know, fall sales will be lower, but still, it may be the best measure we can get out of the available statistics. Some people would add the Pending and Sold to determine Inventory, but to me that counts the Pending sale twice.

So why doesn't the MLS Days on Market count? Simple, when the listing expires without selling, if it is re-listed a day later... Presto- like magic its a new listing and Days on Market is One (1) again. How about our vaunted 97% sales to list average? That's bogus too-- it has no relation to the original list price of the property, it is 97% of the last listed price- that could be thousands, or 10's of thousands off the original price. Insert Days on Market and Sales as a % Sold? Here:
I'll explain more in another post-- why these numbers aren't just meaningless, they're frequently deceptive and dangerous in the wrong hands. The Zip Code reports are on the way, the good,the bad and the ugly- a couple very ugly.

Thinking of Buying New In Charlotte?

Thinking about buying new construction in Charlotte? I've got one suggestion....
Buy Inventory! Buy Inventory. And buy inventory at a discount.

Please. There is a lot on the market and builders are dealing on inventory or spec, not build from scratch.

And check with your Buyer Agent-- there may be an Agent bonus that your Agent would be willing to share with you.

Zip Code and area reports are coming in the next couple days... be prepared for gnashing of teeth.

Transparent real estate is Better real estate.

Google's Done It Again...Too Much Fun

I've written about Google's Picasa, one of my picks for best new software for 2006- well Google's wonderful free photo editor just got better. Picasa Web Albums has been online for a while- 1 Gig free photo storage, but Google quietly improved it dramatically in late June. Now you can geotag your photos-- put your photos on a Google map. Have a look:



You will have to click on a photo, then go back one level to see the map view. But what a view,it lays out the whole community. I'm waiting for Google to make this a bit easier.

Like Slide.com, I can insert my Picasa Album slide show anywhere- I replaced my CharlotteCommunties Slide Show with my Picasa intro-- I like the Google better, see it here.

Just as with Slide.com, I can change the look of my front page with a new slide show--but less advertising with the Google. Now when I receive a request about an area, I'll just send the link, or maybe embed the slide show! I'm working on a My Mapps application that will show where and at what price the Inventory is located in our fair city, with links back to the neighborhood slide show. I'll post it here when I'm done. As I said, this is too much fun!

Bye Bye Slide.com, you were great, I'll miss you.

The Panthers are 1-0

After the pre-season we had, this is an accomplishment. Great individual performances, plus a great game plan made this a sweet day indeed. I like it when the offense reaches real scoring numbers- today 27 points. 3 touch down passes, just under 200 yards rushing, a complete victory. Quite a game call by the new offensive coordinator. Congrats! Go Jake!

Sunday Night Steals And Deals- Condos, In-Town Single Family

Tonight I'm looking at Uptown condos and intown living in Dilworth. First the condo's. There is a solid selection, so this week I'm looking at the under 230K, 2 bedroom market. The ideal first home for a young professional, perhaps taking a roomate to offset some of the mortgage. With its convenient in-town location, you won't be paying for parking.

Tonight's winner: this condo is located in the First Ward and has 2 bedrooms and 2 baths, at just over 960 sf. This is a penthouse with spectacular city views, 10' ceilings, granite, hardwood floors and more. All appliances are included and the list price is 227,000... we'd try around 214,000 and see what we get back. You'll have to go considerably out South Blvd for a better value.

In Dilworth I was shopping for single families under 500K. Dilworth was the city's first suburb, built from around 1900-1925. The homes are being rebuilt, for the 2nd and 3rd time. Price ranges run from 350K for something in need of remodelling, o well over $1M for larger fully remodeled homes.

Tonight' winner Has 1976 sf, 3 bedrooms and 2 and one half baths. It is a complete house, with deck , yard and porch on one of the 2 or 3 best streets in Dilworth. Walk to the trolley, walk to downtown Dilworth, this house is convenient, and priced right at $500,000. Still, an offer of 475 makes sense, and see where it takes us. Larger homes have sold on this street for over 1M this year. The photo is a typical bungalow style Dilworth house.

As always, I represent buyers, and in the interest of fairness, none of these recommendations are my listings, and as such MLS rules prohibit use of pictures. E mail me for more information at Terry (at) TerryMcDonaldRE.com. My recommendations are based on square foot and asking price, community amenities and my knowledge of the area-- your opinion would likely vary, and further investigation would be required. See you next week!

Charlotte Real Estate Market Report: August 2007

Good news on Charlotte real estate prices! For the month ending August 31, area wide prices are UP 5.1% compared with August 2006, comparing average cost per square foot prices of Charlotte single family homes from the MLS. Some news at first glance was alarming, the number of units sold are way down -20% from August 2006- but I believe I can show that this isn't the bad news it might appear to be to the casual observer. (No I didn't say Charlotte Observer) The photo is a Dilworth beauty built in 1903.

What does it mean? I've three broad conclusions, you may have more, tell me what you think:

First, in the face of a nationwide housing recession/depression, and with20% fewer buyers in our marketplace, our prices are up 5.1%. Our economic fundamentals and the valuation in our real estate market remain rock-solid steady. I've said it before- we didn't experience the "bubble" here on the way up, we won't (as a whole) feel it on the way down. Our prices have and continued to grow the old fashioned way, caused by increased population, jobs and increased economic activity- not speculation.

2nd, with unit sales 20% off in August (and Expired listings up 53%!) it is clear Charlotte is feeling the affects of both the sub-prime and the national real estate market downturn through fewer relocations and fewer sales- but how bad is this really for Charlotte? Not as bad as one might think, this reduction in units sold takes us back only to 2004 sales levels. In other words, it is just taking us back a few years with our overall valuations still rising.

3rd- Assuming we have 20% fewer buyers in the marketplace, then the homes not selling could be called the "marginal houses"- the bottom 20% of the market is what is not selling. The question arises what defines the "marginal house"? The Million dollar question don't you think? The 53% increase in Expired listings over August 2006 offers a clue. I think the majority of the "marginal houses" would fall into one of two categories- those in good condition priced too high to sell, and those whose condition does not compare well with other homes in the same price range. In both cases, unrealistic pricing strategies of the sellers or agent's is to blame--remedied by a good agent who prices the home correctly, and home sellers who keep their homes in good to excellent condition.

These comparisons are made easy by the Internet and the increasing transparency of the real estate transaction through pictures , virtual tours, and comparable sales information-- buyers can compare homes side by side and those priced too high, for any reason, don't make the cut.

This too is good news-- with 20% fewer transactions the market is correcting itself, cutting out the fluff, keeping the remaining house sales priced well (indicating our strong fundamentals) and, if it persists it suggests fewer commissions and a shake out of the real estate agents as well as the bottom 20% may seek employment elsewhere- definitely good news!

Let me know what you think. And what are the characteristics of the 20% buyers we lost? Will they be back? Ah, the subject of a future post...